Are you worried about winning too many sweeps?

[dewdrop38]

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OK, everybody, it's time for another poll. Put your thinking caps on and see if you can give an opinion on this one.

 

[pixie13]

:laughing:

 

[pmeek]

:laughing: Great poll dewdrop!

 

[mssc1985]

My reason is that the IRS will come knocking before April 15 for all their taxes.

 

[redneckmom77]

I have never won anything big enough to have to pay taxes on, but that concerns me a little bit. What do you do if you win the prize of all prizes and you cant afford to pay the taxes? :laughing: That is my luck! :wave:

 

[lidarkside]

I have never won anything big enough to have to pay taxes on, but that concerns me a little bit.

This is why it's very important for sweepers to understand what the IRS' guidelines are on winning prizes, and I believe the link to that information is in another thread. However, ALL prizes are required to be reported as other income to the IRS. The IRS just mandates that sponsors report prizes in value of $600.00+. However, sponsors can and have reported smaller prizes to the IRS. Anything under $600.00 that isn't reported is the responsibility of the individual to report, and the IRS doesn't make any exceptions for the definition of prize(s).

 

[redneckmom77]

So, are you supposed to claim everything??? Even small wins. The biggest prize I have ever won is ARV $125. I only started sweeping this year. You probably dont have to, but you could get in trouble if you got audited? Is that right? :scratch:

 

[lidarkside]

So, are you supposed to claim everything??? Even small wins. The biggest prize I have ever won is ARV $125. I only started sweeping this year. You probably dont have to, but you could get in trouble if you got audited? Is that right? :scratch:

The IRS' website section regarding reporting prizes does not specify if the prize has to be of a certain value to be reported. It makes no exceptions. It simply states to report the FMV (fair market value) of prizes under "Other Income". Also note, that ARV's are just approximate figures. You always need to document the actual value of any prize you win even trips.

That being said, what each individual decides to do is up to them; but in can come down to gambling with and hoping that you will never be audited.

The smallest prize I ever won that the sponsor sent in a 1099 to the IRS was $85.00. Then, you can't always be sure if a sponsor sent in a 1099 on a prize but never sent one to you or it got lost in the mail.

You also need to direct your accountant to the proper information on the IRS' site as the majority of accountants have never dealt with reporting prizes and may make an error in judgement when preparing your tax return.

 

[lidarkside]

You can read up on FMV's and ARV's here:

http://www.sweepsadvantage.com/smf/arv-and-your-taxes-ty-to-lidarkside-t50686.0.html

 

[lidarkside]

Oh, any by the way, I never worry about winning too many sweeps! :headbang:

 

[scb2211]

Too many? For as low as my tax bracket is - I'd have to win an insane amount to worry about the IRS. But I figure, I could start a savings account with about 25% of the winnings to cover Uncle Sam's share. And if it's merchandise, maybe I could sell it.

 

[champagne]

Winning too many sweeps?

At this point I'm kissing the ground the mailman walks on if I get anything at all.... I am averaging out a win every 2 months... .That is horrible.... but then again i dont enter AT ALL like i used to.....

 

[nanacj]

Winning?? What does that feel like?
My day is coming though.. I am sure of it.:sunny:

 

[catlady528]

I would like to know what winning too much is like. So far, I've gotten a T-shirt, a $15 Amazon Gift Card, and a Red Robin gift card that I haven't received yet.

I am a little picky about sweeps I enter though. No trips since I have a cat with issues that I don't want to leave him much at the moment. If I'm not interested in the prize I don't enter. And one I didn't enter because I didn't want to pay the IRS for a $25000 consultation for a $5000 cash prize. If it's an expensive prize I better really want it enough to pay the taxes for it.